As negotiations continue, North American supply chains remain vulnerable to prolonged labour unrest at Canadian ports.
Labour strikes have disrupted Canada’s largest container ports on both the East and West Coasts, causing significant disruptions to U.S.-bound trade and sparking concerns across North American supply chains.
The Canadian port strikes have affected the Ports of Vancouver, Prince Rupert, and Montreal, which handle large volumes of containerized cargo destined for the United States.
With U.S. trade heavily reliant on these three Canadian ports, the strikes threaten to prolong delays, increase costs, and impact various sectors, especially with the peak holiday season approaching.
October was already a challenging month at North American ports, with labour tensions increasing at the Port of Montreal and strikes at U.S. East and Gulf Coast ports. Now, disruptions have continued into November as negotiations persist.
The Canadian government has intervened in previous port strikes, and federal mediators are ready to assist with negotiations. Canadian Labour Minister Steven MacKinnon has publicly urged all parties to reach a resolution. He also emphasized the economic stakes for businesses, workers, and farmers.
This is not the first time Canadian port labour disputes have impacted U.S. trade. In July 2023, a 13-day strike at Vancouver and Prince Rupert delayed U.S.-bound freight for months. The current strikes could have similar ripple effects.
The latest wave of disruptions began on November 4, when members of the International Longshore and Warehouse Union (ILWU) Local 514 initiated a labour strike at the Ports of Vancouver and Prince Rupert.
As Canada’s largest and third-largest ports, respectively, these facilities play an important role in moving goods across the border into the U.S. The Greater Vancouver Board of Trade estimates approximately $800 million in trade flows through these West Coast ports daily.
The ILWU Local 514 strike is a response to failed contract negotiations with the British Columbia Maritime Employers Association (BCMEA), which represents terminal operators.
Union members voted overwhelmingly in favour of a strike in September, following the expiration of their contract on March 31, 2023. Key issues in the negotiations include automation, job security, and wage increases.
In response, the BCMEA implemented a lockout of forepersons and other Local 514 members starting with the 4:30 p.m. shift on November 4. This escalated tensions and left port operations at a standstill.
On the East Coast, the Port of Montreal—Canada’s second-largest port—continues to face disruptions due to an ongoing strike by CUPE Local 375 members.
Starting November 1, the Port of Montreal Longshoremen’s Union, CUPE Local 375, led an indefinite strike at the Port’s Viau and Maisonneuve terminals.
Montreal’s proximity to the U.S. makes it a key port for imports headed to eastern and midwestern states.
With two terminals blocked since late October and 40% of East Coast container traffic passing through Montreal, the strike poses significant challenges for U.S.-bound goods.
The U.S. relies on Canadian ports as a critical entry point for goods from Asia. According to the U.S. Census data, approximately $572 million in containerized trade arrives in the U.S. daily from Canada.
Moreover, according to the U.S. Department of Transportation, rail cross-border trade accounted for 14% of the $382.4 billion total bilateral trade between the U.S. and Canada in the first half of 2024.
The Vancouver and Prince Rupert ports play a vital role in cross-border rail trade, which is primarily facilitated by the Canadian Pacific Kansas City and Canadian National Railway.
If your business is affected by these strikes and you'd like to consider alternative options for transporting your goods from Canada, please reach out to one of our trade professionals.